Tendering is a significant process within most construction organisations and when executed with accuracy, successful bidders will be awarded with contract opportunities. From determining project scopes, triple checking drawing requirements and interacting with clients by requesting information on the finest of details, negotiating with designers and engineers to analysing proposals, whilst generating accurate cost estimates that potentially conform to a stipulated budget, meeting deadline and safety requirements.
The difference between a tender and a quote:
Although tenders and quotes share many common characteristics, they also have several differences that separates them. Both a process can be formal offers and perform the work in return for payment. Generally, the scope of works will be defined, and responses are requested from multiple suppliers to gain competitive costings. A deadline is outlined for the response and a fixed price is returned to the client, often in a schedule of rates. Finally, a contract is awarded to the successful respondent.
Tenders typically are of a higher monetary value than a quote and of a larger project scale will follow a more professional and formal process with greater integrity. The tendering process usually will be allocated more time due to the complexity of a project, where as a quote is less detailed and can even be a budget estimate at times if the job is small or very limited for time.
Keys steps to a successful submission:
Reaching the stage of adjusting your final numbers for a tender price is no easy task. It is an all-encompassing complex activity that draws upon significant amounts of information, data and costs, and is extremely involved and time consuming.
Keys to success are:
- Do not waste any time and get started the second a Schedule of Rates or tender package hits your email inbox. Tender processes are intense and most often there is less time to prepare than one would normally like, so no leaving things to the last minute. Invest your time upfront.
- Understand the details, rules and requirements, know the scope and don’t be afraid to ask the curly questions. Provide the correct information to contractors when requesting quotes. People tend to launch into things with only half the information, but that strategy does not work well when tendering.
- Develop a program, prioritise a list of tasks and set goals, then apply actions to each item and tick them off one at a time to avoid getting overwhelmed and ensuring the scope is covered.
- Build a robust pricing framework for the pricing/quoting, a system gathering inputs and outputs of information. Similar to building a luxury fitout, the bones of your quote require the right structure to ensure all elements have been addressed and neatly fit together.
- Allow time to review and run the numbers with a senior executive to ensure all tender requirements are captured and an informed decision is made on the submission bid. A confident, informed, and strategic submission will position the company well placed for that winning tender price!
Seal the deal and ring the bell!!
We have been around the block a few times… with 31 strong years of experience and have learnt a thing or two about our client’s expectations. Much respect has been gained and strong relationships built with a wide portfolio of luxury brands and organisations, however we are in an everchanging industry and are always faced with fresh competition. For that reason it is important to not become complacent and remain sharp by seeking out multiple quotes to find the most competitive price, as it can be expected there is going to be some others to compete against for the same tender.
So, as you can imagine, ensuring your tender stands out from the crowd is vitally important. At the end of the day, it is those seemingly small details that might just be the difference to making the bid stand out to a tender panel.